Scatec (Hold, TP: NOK72.00) - Larger asset sales in sight
The reported Q4 EBITDA beat of 15–17% versus our estimate and consensus was mainly related to one-offs, but the stronger than expected margins in D&C were a positive. After having divested small assets in non-focus markets, the sale of large assets in non-core and core markets is on the table. We consider this prudent as it would help realise the value of its operative assets and allow for deleveraging, which should be warranted with a 2024e NIBD/EBITDA of 6.1x. We reiterate our HOLD, but have raised our target price to NOK72 (70).
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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